Quote:
Originally Posted by Pipconvert
Hey Phil,
Thank you SO much for your time in replying to my post here! I really appreciate it tremendously!
You are totally right about the whole emotions and getting to close the trade before it runs out. Do you still face these tedious emotions?
The only question that remains in my mind is the following:
How do you know if the trade has really FULLY ended going your way?
Thanks again for your time and effort!
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I absolutely still face these emotions! Less than an hour ago I had a trade end at breakeven for $0, when just 24 hours ago that trade was up hundreds of dollars!! Things like that effect the best of us, but if you have confidence in your method you should be able to overcome it. And if it's not your own method your trading then just demo trade or backtest it until you are confident!
The way you know your trade has fully ended is also by backtesting and demo trading. You don't have to squeeze every single pip out of your trade, but if your trading results are based on closing your trade out at 100 pips (or any other criteria) and you panic on a retrace and exit before 100 pretty often then you might be losing money in the long run. If your evidence for trading a system is based on 100 pips, then exit at 100 pips or do some more testing based on lower levels.